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March 2018

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The All Pakistan Textile Mills Association (APTMA) has said that the decision to impose regulatory duty on import of cotton from India through Wagha Border is the outcome of false data and non-professional approach of Senate Standing Committee on National Food Security and Research.

While rejecting the recommendation of the committee, APTMA Chairman Tariq Saud said in a statement that the ginners have not more than 100,000 bales of cotton, which they will trade off before the arrival of the new crop.

Saud said Finance Minister Ishaq Dar in his budget speech accepted that due to the failure of cotton crop by about 35 per cent, this year's growth rate has declined by about 0.5 per cent.

He said the failure of local cotton crop by about 35 per cent has put extra burden on the industry to import more than 4.5 million bales of cotton to meet the consumption requirement of the spinning industry.

"This decline in production of cotton in the country has not only affected the operations of basic textile industry, which is already suffering due to high cost of doing business and shortage of energy, but also resulted in the surge in import of cotton yarn and fabrics," the APTMA chairman added.

Due to high cost of doing business and other factors, the domestic industry is unable to compete in the international market, which can be confirmed from the fact that in the 11 months of the current financial year, the imports of cotton yarn has almost doubled as compared with 2014-15, Saud pointed out.

He said India does not give any subsidy to its farmers on export of cotton to Pakistan. India, since independence, has undertaken variety of land reforms including modern farming system, whereas no land reforms and modern cotton farming technology was introduced in Pakistan, he added.

Tariq Saud said the reason behind the enhancement in production of cotton crop in India is due to the introduction of modern technology and research, which is lacking in Pakistan.

He demanded the government to provide incentives and better quality cottonseed to the growers traditionally cultivating cotton to produce more and more cotton instead of other crops.

The reorganization of cotton research institutions is vital at the moment, as existing research centres have failed to come up with the expected results to meet the consumption requirement of the industry, he said, adding that the cotton research centers, controlled by the government, were presently in pathetic state and the cotton cess of Rs 50 per bale obtained from spinning industry was being wasted.

Last week, the Senate Standing Committee on National Food Security and Research recommended the imposition of Regulatory Duty (RD) on the import of cotton bales from India. The committee observed that import of cotton lint from India via Wagha border despite sufficient stock in the country would adversely affect cotton growers. (SH)